The number of black and minority ethnic (BME) entrepreneurs starting up their own business has risen by a third, new figures reveal.
Some 50,000 BME-owned companies were set up in 2004, up from 30,000 in 2000, according to data from Barclays.
As a result, ethnic start-ups now account for 11% of all new businesses in the UK.
The growth in numbers was bolstered by minority business performance outstripping that of their white counterparts, the report said, as well as large numbers of young ethnic entrepreneurs going it alone.
BME firms are three times more likely to employ staff and have a turnover of between £250,000 and £1 million.
Pakistani and Chinese people are the most entrepreneurial of all ethnic groups, with start-ups increasing by 22% and 19% respectively over the four-year period.
Regionally, London has the highest number of minority firms accounting for 38% of the total ethnic-owned enterprises.
Professor Monder Ram, director of the Centre for BME Research at De Montford University, said: "Overall the research findings are hugely encouraging and indicate the important contribution BMEs are making to the economy.
"Their entrepreneurial efforts are also noticeable for the 'non-traditional' sectors they are entering, such as property and finance. However, there is no room for complacency as BMEs still face some unique barriers."
Finance was one of the barriers to success highlighted by the report.
Some 61% of entrepreneurs believed they received less money for performing the same function as their white counterparts, while two thirds claimed self-confidence was an obstacle.
Almost one in ten complained racism stopped them setting up their own business.
